§ 717. — Regulation of natural gas companies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC717]
TITLE 15--COMMERCE AND TRADE
CHAPTER 15B--NATURAL GAS
Sec. 717. Regulation of natural gas companies
(a) Necessity of regulation in public interest
As disclosed in reports of the Federal Trade Commission made
pursuant to S. Res. 83 (Seventieth Congress, first session) and other
reports made pursuant to the authority of Congress, it is declared that
the business of transporting and selling natural gas for ultimate
distribution to the public is affected with a public interest, and that
Federal regulation in matters relating to the transportation of natural
gas and the sale thereof in interstate and foreign commerce is necessary
in the public interest.
(b) Transactions to which provisions of chapter applicable
The provisions of this chapter shall apply to the transportation of
natural gas in interstate commerce, to the sale in interstate commerce
of natural gas for resale for ultimate public consumption for domestic,
commercial, industrial, or any other use, and to natural-gas companies
engaged in such transportation or sale, but shall not apply to any other
transportation or sale of natural gas or to the local distribution of
natural gas or to the facilities used for such distribution or to the
production or gathering of natural gas.
(c) Intrastate transactions exempt from provisions of chapter;
certification from State commission as conclusive evidence
The provisions of this chapter shall not apply to any person engaged
in or legally authorized to engage in the transportation in interstate
commerce or the sale in interstate commerce for resale, of natural gas
received by such person from another person within or at the boundary of
a State if all the natural gas so received is ultimately consumed within
such State, or to any facilities used by such person for such
transportation or sale, provided that the rates and service of such
person and facilities be subject to regulation by a State commission.
The matters exempted from the provisions of this chapter by this
subsection are declared to be matters primarily of local concern and
subject to regulation by the several States. A certification from such
State commission to the Federal Power Commission that such State
commission has regulatory jurisdiction over rates and service of such
person and facilities and is exercising such jurisdiction shall
constitute conclusive evidence of such regulatory power or jurisdiction.
(d) Vehicular natural gas jurisdiction
The provisions of this chapter shall not apply to any person solely
by reason of, or with respect to, any sale or transportation of
vehicular natural gas if such person is--
(1) not otherwise a natural-gas company; or
(2) subject primarily to regulation by a State commission,
whether or not such State commission has, or is exercising,
jurisdiction over the sale, sale for resale, or transportation of
vehicular natural gas.
(June 21, 1938, ch. 556, Sec. 1, 52 Stat. 821; Mar. 27, 1954, ch. 115,
68 Stat. 36; Pub. L. 102-486, title IV, Sec. 404(a)(1), Oct. 24, 1992,
106 Stat. 2879.)
Amendments
1992--Subsec. (d). Pub. L. 102-486 added subsec. (d).
1954--Subsec. (c). Act Mar. 27, 1954, added subsec. (c).
Transfer of Functions
Federal Power Commission terminated and functions with regard to
establishment, review, and enforcement of rates and charges for
transportation and sale of natural gas by a producer or gatherer or by a
natural gas pipeline or natural gas company transferred to Federal
Energy Regulatory Commission by sections 7172(a)(1)(C) and 7293 of Title
42, The Public Health and Welfare.
State Laws and Regulations
Section 404(b) of Pub. L. 102-486 provided that: ``The
transportation or sale of natural gas by any person who is not otherwise
a public utility, within the meaning of State law--
``(1) in closed containers; or
``(2) otherwise to any person for use by such person as a fuel
in a self-propelled vehicle,
shall not be considered to be a transportation or sale of natural gas
within the meaning of any State law, regulation, or order in effect
before January 1, 1989. This subsection shall not apply to any provision
of any State law, regulation, or order to the extent that such provision
has as its primary purpose the protection of public safety.''
Emergency Natural Gas Act of 1977
Pub. L. 95-2, Feb. 2, 1977, 91 Stat. 4, authorized President to
declare a natural gas emergency and to require emergency deliveries and
transportation of natural gas until the earlier of Apr. 30, 1977, or
termination of emergency by President and provided for antitrust
protection, emergency purchases, adjustment in charges for local
distribution companies, relationship to Natural Gas Act, effect of
certain contractual obligations, administrative procedure and judicial
review, enforcement, reporting to Congress, delegation of authorities,
and preemption of inconsistent State or local action.
Executive Order No. 11969
Ex. Ord. No. 11969, Feb. 2, 1977, 42 F.R. 6791, as amended by Ex.
Ord. No. 12038, Feb. 3, 1978, 43 F.R. 4957, which delegated to the
Secretary of Energy the authority vested in the President by the
Emergency Natural Gas Act of 1977 except the authority to declare and
terminate a natural gas emergency, was revoked by Ex. Ord. No. 12553,
Feb. 25, 1986, 51 F.R. 7237.
Proclamation No. 4485
Proc. No. 4485, Feb. 2, 1977, 42 F.R. 6789, declared that a natural
gas emergency existed within the meaning of section 3 of the Emergency
Natural Gas Act of 1977, set out as a note above, which emergency was
terminated by Proc. No. 4495, Apr. 1, 1977, 42 F.R. 18053, formerly set
out below.
Proclamation No. 4495
Proc. No. 4495, Apr. 1, 1977, 42 F.R. 18053, terminated the natural
gas emergency declared to exist by Proc. No. 4485, Feb. 2, 1977, 42 F.R.
6789, formerly set out above.
Section Referred to in Other Sections
This section is referred to in sections 3301, 3431 of this title;
title 42 section 7172.
